Posts tagged ‘risk’

When the current Chinese leadership took office in 2013, there was much talk about China’s economy becoming more market-driven, entrepreneurial and less reliant on the state. But the country appears to have been moving in the opposite direction in recent years and now Beijing seems to be trying to exert greater control on the country’s private sector.

Like most of China’s economy, privately-owned steel producers do not enjoy the same benefits as their state-owned rivals. One benefit they do possess, however, is flexibility. Therefore, potentially being subject to greater controls – having their wings clipped to a certain extent – is unsurprisingly receiving mixed reactions.

The shipping industry’s vessel loans are typically taken on the basis of a premium over LIBOR. LIBOR has been experiencing upward pressure since early 2017, as major central banks have moved to a tightening stance. The three-month LIBOR has risen to 2.3% as of April 2018, the highest rate seen since November 2008, the early days of the financial crisis.